Israeli court orders seven to repay NIS 1.85m in misused cancer donations
Seven charity officials must repay NIS 1.85 million after a court found that funds intended for children with cancer were diverted to another cause.
In a significant legal ruling, Israel's Haifa District Court has ordered seven individuals associated with two linked charities to repay NIS 1.85 million in misused funds meant for children and teenagers with cancer. The decision, issued on October 8 by Senior Judge Ron Sokol, found that the officials breached their duties by allowing the donation to be diverted and spent on unauthorized purposes. The charities, Keren L Chaim and Keren L Chaim L Yeladim V Noar, are both set to close in 2024.
The donation originated from the estate of Helen Hatab, who had previously suffered from cancer and wished to support a similar cause. Despite a family court approving the initial arrangement in March 2019 for educational support, the funds were mistakenly transferred to the newer charity, Keren L Chaim L Yeladim V Noar. This violation was identified by the First International Bank of Israel, which refused to process the transfer due to the mismatch between the approved recipient and the account used.
The court concluded that the officials failed to account for the money adequately and submitted misleading reports to FIBI. Pauker Shemesh, the lead official, was also ordered to repay NIS 180,390 in salary and rent, as well as interest and inflation adjustments. The seven defendants are collectively required to repay the full amount, with any individual able to cover the entire sum still owed. Interest and inflation adjustments will be added from April 2019.
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